If you haven’t checked out The Academy yet, you’re missing out. We launched our educational site just last month, and we’re already seeing a huge amount of interest around our subscription finance content. This is of no surprise to us.
New subscription finance models have been a hot topic for a while, and there never seems to be any shortage of discussions to have. It makes sense — recurring revenue business models deliver greater predictability, deeper insight to your customers’ needs and entirely new revenue streams through upsells, cross-sells and upgrades.
Businesses of all sizes and industries are shifting to the subscription model, and discovering just how powerful the impact of this pivot can have on every aspect of their booking, finance and revenue recognition structures.
Finance executives used to live in a pretty simple world. A world centered around single, discrete sales. And the metrics you used to measure success were simple — how many units were sold within a certain period of the past. Everything was backwards looking.
In the Subscription Economy, the focus shifts from tracking products shipped to random customers at sporadic intervals to a business strategy focused around offering innovative services that breed long-term relationships.
As a result, everything you thought you knew about finance will be turned on its head. And you’ll find yourself asking lots of questions:
- What does a business model centered around measuring relationships, not products, look like?
- Are my legacy systems setup to look forward, not just backwards?
- What are the new set of metrics I need to educate the company on, in order to help them understand the state of the business?
- Can I learn from those who’ve already embarked on this transformation? What are the proven strategies for ongoing success in the Subscription Economy?
And if you’re looking for something more interactive, you’re in luck. Zuora is co-hosting, with The Financial Executives Networking Group (FENG) a webinar tomorrow, November 13th, titled The Three Metrics that Matter for your Subscription Business. Join us to get a deep dive in the metrics that really count in the Subscription Economy and just how critical they are to this new model. Register here.
Whether you read the article in The Academy or attend tomorrow’s webinar, both are well worth it for companies considering the shift or new businesses looking to launch leveraging this new business model.
It’s crucial you get ahead of the game and understand the basics around Subscription Finance so you can capitalize on this model straight out of the gate.